Financial crises and Fair Value Accounting (Historical cost,deprival Essay

Financial crises and Fair Value Accounting (Historical cost,deprival value and replacement cost) - Essay Example hand, the supporters of fair value accounting method argued that the role of this method of valuation was minimalistic in the financial crisis and that the use of other methods of accounting could not have prevented the crisis. They identified that certain macro-economic factors like account surpluses, dispersing of loans without credibility checking, excess level of risk taking by the banks and the sharp fall in the prices of mortgage backed assets to be the main factors driving the financial crisis. The financial crisis of 2008 was a deep recession which impacted almost all the nations of the world. Therefore, the reasons that have caused the crisis have been extensively studied by the economists and scholars. One of the most studied topics in this respect is whether the use of the fair value accounting by the financial institutions has been a driving force for the downturn. The financial crisis of 2008 led to major debates among the researchers, academicians, banks as well as other participants of the financial markets regarding the role of Fair Value accounting in driving the failure of the financial markets in during the financial crisis. The financial crisis of 2008 was characterized by liquidity and volatility problems in the financial markets and the collapse or quasi breakdown of the major financial institutions of Wall Street like Lehman Brothers, Merry Lynch, Royal Bank of Scotland, Citicorp, AIG, Bear Sterns and Dexia (Ryan, 2008, p.14). The non-supporters of Fair Value Accounting argued that the use of fair value accounting methods in the financial reporting of the major financial institutions was the main accelerator and amplifier of the high intensity of the financial downturn. According to them, many financial institutions marked down the asset values in their financial reports due to the drip in the value of many financial instruments. Th e marked down representation of the asset values in the balance sheets weakened the capitalization ratios of

GEOINT and Europe Essay Example | Topics and Well Written Essays - 500 words

GEOINT and Europe - Essay Example However they were less helpful in the both world wars were easily grounded and conquered, there were several reasons to it, They were shaped in different forms ranging from polygonal to ring shape fortress however never survived and were not able to fulfill the purpose of its existence. One of reasons was its stagnant and motionless own existence as a giant body in itself. Despite its high walls and masonry. Walls were directly exposed to cannon fires, Explosive shells and artillery fires. Although advancements were made and in order to to kill the effect of cannon fires, Steel and concrete forts were introduced, and bunker concept was introduced to avoid the assault by enemies.. however despite all this and thick shielding there were couple of reasons that resulted in the whole scheme being a failure , the advancements in the machinery, the weapons, and later in world war two the use of Tanks meant any target in sight was vulnerable ,and in a way it was exposing yourself directly to the enemy. With fighter plans available, the forts presented a case of sitting duck that was waiting to be shot from above. By 2nd world war nuclear capabilities were achieved that would eliminate and erase whole of city, a fort being a small area. Any fort that had bunkers in it, a counter was created for it.and bunker busters were introduced and implemented on the forts strategy. Bunker busters are especially designed for such materials that are hard in nature .they were highly penetrative. The permanent existence of fort at one point, being a static entity, allowed the enemy to prepare itself and collect and gather all the information that was necessary to attack and launch an assault, therefore forts stood no ground of preventing and standing the enemy’s attack. By 2nd world war, the battles were fought on mobile basis. Any fixed position